The graveyard of business decisions and investments is littered with failed transformation initiatives. Be it in corporate, government or not-for-profit, failure is not discriminating. Failure bites hard and it can take a long time to recover.
Whether it is a new software implementation, new outsourcing arrangement, new operating model, new ways of working or new market entry, failure can have big-time consequences. Often failure leads to leadership changes, changes in strategy, even bankruptcy.
By some reports, 3 out of every 4 business change initiatives fail. Failure in this context means missed budget, timeline or outcomes not delivered.
Lack of Vision
Limited clarity on where the business or initiative is going and why. What is the business imperative? Why do we need to change? It is critical that people, employees, shareholders and suppliers, understand the rationale for the change and the big picture.
Poor Implementation Skills
To deliver on the vision, skills and experience in delivering change are required. Driving change at the necessary pace, discipline and focus require particular skill-sets. These are not day-to-day operational skills and may not exist in the organisation.
Lack of Management Support
Big change needs to be led from the top. Management and leadership necessary for the change and impacted by the change need to be on-board and leading. They need to be communicating clearly, committing funds and resources and making tough decisions. Without this, the programme is doomed to fail.
Failure to Manage Resistance
Resistance is inevitable. It will come from anywhere and everywhere. Understanding the resistance and its drivers is the key first step. Once you know this, you are armed to address the resistance and ensure it does not get in the way of success.
Absence of Governance
A lethal error, but surprisingly a common occurrence. What good governance looks like is part of the problem. Many see governance as a weekly or bi-weekly project catch-up. For large initiatives you need best-practice governance including tight issues and risk management, a clear operating rhythm, a solid decision-making process and unambiguous lines of accountability.
When embarking on any major business initiative, the best disposition to take is one of pessimistic realism. In other words, be aware that the odds are stacked against you and take every opportunity to bolster your programme with additional scaffolding to increase its chances of success.
Remember, hope is not a strategy.
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